Code of funding practice – now available
6 October 2010
The collaborative work of the Office for the Community and Voluntary Sector (OCVS), Standards New Zealand, and a network of community and government people with funding expertise, has led to the development of a Code of funding practice.
The Code of funding practice is now available. The Code will help government funders and non-profit organisations work together when using public funds to benefit communities. The voluntary Code contains seven core code areas, each accompanied by a set of criteria, success indicators, and examples of good practice.
More than $3 billion of public money is provided annually to the non-profit sector – for services and activities as diverse as aged care, mental health, care and protection of children, sports, the arts, conservation, and international aid. Although most of the 97,000 non-profit organisations in New Zealand receive no government funding, those that do require fit-for-purpose funding arrangements so they can achieve good outcomes for communities and make good use of public resources.
The Code will complement official guidance from the Treasury and the Office of the Auditor-General, and will help parties to understand each other's motivations and purpose. The Code is not prescriptive but addresses behaviours that will lead to more productive relationships – focusing on improving trust and achieving outcomes.
Months of work went into development of the Code. The OCVS and Standards New Zealand held a series of interviews with government and non-profit groups to inform the initial draft. In April 2010, Standards New Zealand sought input via public consultation. The Code was refined based on responses to the consultation and the funding and accountability network and various government agencies helped to finalise content.
The OCVS hopes to run a Good Practice in Action seminar based around the Code of funding practice later in 2010. For more information please contact hugh.lawrence002@msd.govt.nz, telephone 04 916 3987.
Launching the Code – Minister Tariana Turia
Community and voluntary sector Minister Tariana Turia released the Code of funding practice on 30 September 2010.
The Code will assist government agencies and community organisations to build better funding arrangements through working together to address issues such as managing risk and negotiations, high compliance costs, accountability, shared outcomes, monitoring, and reporting.
'I'm delighted that we have this Code which can assist government agencies and non-profit organisations to work together when using public funds to benefit communities,' says Turia.
'My interest has always been on achieving better outcomes – and I am sure that this Code will help to keep the focus on making that difference evident.
'We are keen to try new ways of delivering funding and contracting with service providers so that families, whanau, and communities reap the benefit.
'The Code contains criteria and good practice examples including the need for respect, transparency, open communication, flexibility, and accountability, and how these can be put into practice.'
The Code of funding practice complements the Treasury Contracting Guidelines and the Office of the Auditor-General's Good Practice Guide for funding arrangements.
'I would particularly like to thank all the contributors from the community and voluntary sector and government agencies that helped develop the Code,' says Mrs Turia.
'Although the Code is voluntary I will be talking with my Ministerial colleagues to encourage them to read it and ensure their agencies use it.'
A copy of the Code is available at www.goodpracticefunding.govt.nz.
Summarised from a Ministry of Social Development media release 30 September 2010.
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